Mfco property

09/01/2024

Buying a House or Renting a House??
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Lately, we often hear/read discussions and debates regarding the issue of BUYING A HOUSE vs. RENTING A HOUSE. This issue arises due to the increasing house prices over the years, somewhat hindering the aspirations of many Malaysians to own their dream homes.

However, if you have decided that renting is a more advantageous and cost-effective way for the long term, you should also have high financial discipline to set aside emergency savings and savings for owning a home someday.

Speaking from a more realistic perspective, even though various financial experts emphasize the importance of having an emergency fund to face challenging times, the fact is not all Malaysians, especially heads of households, can allocate a portion of their income to an emergency fund due to existing commitments.

The term "Emergency" here is subjective and varied, but in this context, it refers to unforeseen and sudden situations that require a significant amount of money, such as medical expenses or legal issues where you need to pay a substantial sum for bail and later for the services of a lawyer.

In facing such unforeseen events, having a land grant in your name can help in the following ways:

1. **Refinance Your House with the Bank**
Check your remaining loan balance with the bank, then assess the current value of your house/property. If there's a significant gap between the loan balance and the current property value, you can consider refinancing your house to obtain cash on hand to address your emergency.

This method is more cost-effective than taking out a high-interest personal loan. At the same time, you won't lose your home, and you can continue to live there. You also avoid the hassle of selling your house and searching for a buyer, which can take months.

Ensure you have a good CCRIS payment record as you're borrowing money from the bank.

2. **Use the Land Grant as a Court Guarantee**
Facing court charges is a dreaded situation for any Malaysian. When accused in court for any offense (other than civil suits), a guarantor typically has to pay a bail amount to ensure the accused can be released temporarily until the case is settled. If you can't pay the bail amount in cash, you can use your land grant as an alternative.

Don't worry! It doesn't mean your house will be handed over or transferred to the court. The original land grant is only held by the court until your case is resolved. After the case is settled, the original grant is returned to you.

However, this option may not apply to cases in unbailable offence where bail cannot be posted.

3. **Sell Your House**
If your financial records are not that good and you need money to address your emergency, selling your house might be the best and last alternative to resolve your situation and reorganize your finances.

Check the current value of your house, and if you need a quick buyer, why not sell it below market price or absorb the seller's legal fees and stamp duties through the remaining purchase amount you will receive. These offers can attract buyers to purchase your house.

**Conclusion:**
The above three situations somewhat illustrate how owning a property/ies can help you in times of emergency. However, never consider using your grant for loan sharks and then signing a Power of Attorney with them, especially when the borrowed amount is not equivalent, far less, than the value of your property. Be wise no matter how difficult the situation is. InshaAllah, there is a way out.

For those who do not yet own property, try to strive or make an effort to get your first property. The government has introduced various initiatives to help Malaysians own homes, including zero-deposit schemes, free stamp duty transfers, and developers and banks that absorb legal fees. In short, owning a home without cash from your own pocket is not an impossible task today.

Hope the above sharing brings benefits to the readers. Don't forget to like and follow my profile to motivate me to write more in the future.

FF - 014-930 4405

MAHKAMAH Tinggi Kota Kinabalu membenarkan permohonan menggunakan geran tanah bernilai tidak kurang RM2 juta untuk membayar ikat jamin bekas Pengarah Jabatan Air Sabah, Awang Mohd Tahir Awang Talib, hari ini.

09/01/2024

Buy a new house or 2nd hand house (subsale)
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The question of whether to buy a new house from a developer or a second-hand house (subsale) is often become a dilemma, especially for first-time homebuyers. Buyers typically lean towards the 'new house,' plus every year the government often provides incentives, including significant tax exemptions, for first-time homebuyers purchasing from developers.

To attract buyers, developers offer various deals, such as free legal fees, 'waive' of 10% deposit, and some even provide cash back. It is also not uncommon to see these days some developers even sell properties fully furnished, adding to the appeal for first-time buyers.

Despite these enticing offers, buyers should conduct thorough research on the background of the selling developer, as there's a risk that the development might not be completed or could be abandoned. Media reports often highlight such risks, and it can become more problematic when buyers have to pay monthly mortgage installments for a house they can't occupy due to incomplete construction.

Claiming buyer rights and seeking justice through legal channels can be time-consuming and expensive. This differs from subsale houses, where even though not brand new, the property is physically present, can be lived in immediately, and the ownership is already registered.

New houses also don't guarantee perfection, with some defects only becoming apparent after 3-4 years of residence. Similar issues can occur with subsale houses, but buyers can directly inquire about the house's condition and negotiate with the seller to lower the price or fix any damages before proceeding with the purchase.

A diligent subsale buyers can conduct thorough investigations by asking neighbors about common issues in the area. This information helps buyers make informed decisions about the property they intend to purchase.

Furthermore, for subsale purchases, buyers have a broad range of options to acquire a property matching or below market prices. Regardless of the seller's set selling price, buyers can access real market information and make more accurate decisions.

In conclusion, whether buying a new or subsale house, diligent research, especially regarding risks, is crucial for any buyer. Committing to monthly mortgage payments is a long-term obligation, typically only concluded upon reaching retirement age.

[FF]